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HomeMy WebLinkAboutC26100A - 1st Amndmnt to Lease for 44-911 Cabrillo Ave CITY OF PALM DESERT STAFF REPORT REQUEST: AUTHORIZATION TO NEGOTIATE AND FINALIZE A FIRST AMENDMENT TO THE LEASE AGREEMENT BETWEEN DESERT SANDS UNIFIED SCHOOL DISTRICT AND THE CITY OF PALM DESERT FOR THE PURPOSE OF FACILTATING A PRE-SCHOOL PROGRAM AT THE PALM DESERT EARLY CHILDHOOD EDUCATION CENTER, LOCATED AT 44-911 CABRILLO AVENUE, PALM DESERT, CALIFORNIA SUBMITTED BY: Catherine Walker, Senior Management Analyst APPLICANT: Desert Sands Unified School District 47-950 Dune Palms Road La Quinta, California 92253 DATE: July 8, 2010 CONTENTS: First Amendment to the Lease Agreement Recommendation By Minute Motion: 1. Authorize staff to negotiate and finalize a First Amendment to the Lease Agreement by and between the Desert Sands Unified School District and the City of Palm Desert for the continuation of an existing preschool program and the Palm Desert Early Childhood Education Center; 2. A rove Contract No,c26�oo Pp s`�.�bstantially to form; and 3. Authorize the City Manager to approve and execute the First Amendment to the Lease Agreement. Backqround On Ju{y 14, 2005, the Redevelopment Agency Board approved a Lease Agreement with the Desert Sands Unified School District ("DSUSD") for use of the property located at 44-911 Cabrillo Avenue, currently known as the Early Childhood Education Center Palm Desert, as both Head Start and State Pre- School Facility. The programs serve 80 preschool age children and their families, who at the time were being displaced from their child care facilities. The Early Staff Report Early Childhood Education Center July 8, 2010 Page 2 of 2 Childhood Education Center is provided State funding for the staffing, instructional materials, utilities, maintenance, nutritional meals, and snacks for the enrolled children. The Desert Sands Unified School District provided for all facility upgrades necessary for licensing purposes, and the Redevelopment Agency provided funds for site/facility modifications to address code and safety requirements. The Early Childhood Education Center is currently a fully licensed Head Start and State Preschool facility, providing four daily sessions and services a total of 80 students. The terms and conditions of the First Amendment to the Lease Agreement are identical to the previous Agreement, and will extend DSUSD's occupation of the facility for an additional five years. DSUSD is currently reviewing the First Amendment to the Lease Agreement and has placed the item on the DSUSD Board's July 20, 2010, Agenda. Once the Agreement is approved by both parties and their respective legal counsels, staff will finalize the Agreement. Fiscal Analvsis While there are no current expenses in relation to the approval of the Lease Agreement, there are potential future costs for building and site maintenance. Submitted By: Catherine Walker, Sr. Management Analyst artin Alvarez, Redevelopment Manager Department Head: . G sti McCarthy, A or edevelopment Ct'TY COU1vCiLA TtON //�/� APPROVF,D ..._._i}F.NiF.D RF,CEIVED OTHEI2 �� Paul S. Gibson, Director of Finance MF.ETING DATE -� ���-�10 AYF.S: '�ea 5o F � E� • � A�proval: NOES: � � ABSENT: ABSTAIN: �� VERIFIED BY: � j'�� John M. Wohlmuth, City Manager Original on File with City Clerk's Of'fice G:\rda\Cathy Walker\Word Data\DSUSDWallarooLease2010StfRprt.doc Contract No. C2610QA FIRST AMENDMENT TO LEASE THIS FIRST AMENDMENT TO LEASE ("AmendmenY') is made as of Jul by and between the CITY OF PALM DESERT, a California municipal corporation ("Less r0)0, as successor-in-interest by assignment to the PALM DESERT REDEVELOPMENT AGENCY, a public body, corporate and politic("Agency"), and DESERT SANDS SCHOOL DISTRICT an education agency ("Lessee"). ' RECITALS A. Agency and Lessee entered into that certain Lease Agreement dated as of July 14, 2005 (the "Lease"). B. The Agency conveyed the property which is the subject to the Lease to the Lessor pursuant to that certain Conveyance Agreement dated as of January 1 l, 2007, by and between the Agency and Lessor, and in connection therewith the Agency assigned its interest in the Lease to the Lessor pursuant to that certain Assignment and Assumption of Leases dated January 11, 2007, by and between the Agency and the Lessor. C. Lessor and Lessee wish to amend the Lease as provided in this Amendment. NOW, THEREFORE, in consideration of the facts contained in the Recitals above, the mutual covenants and conditions below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lessor and Lessee hereby amend the Lease as follows: 1. All initially capitalized terms not otherwise defined herein shall have the meaning ascribed thereto in the Lease. 2. Section 1.2 of the Lease is hereby deleted and the following substituted in its entirety therefor: "1.2 Premises: That certain land, including the building and all improvements thereon(collectively, the"Building"), commonly known as 44-911 Cabrillo Avenue, Palm Desert, CA 92260 (Palm Desert Early Childhood Education Center), and located in the County of Riverside, State of California, and more particularly described on Exhibit"A"attached hereto." 3. Section 1.3 of the Lease is hereby deleted and the following substituted in its entirety therefor: "1.3 Term: The term of this Lease shall commence on the date on which Lessor delivers the Premises to Lessee with the Lessor's Work(defined in Section 1.7 below) substantially completed ("Commencement Date") and shall end on July l, 2015 ("Expiration Date"). Upon the request of the Lessor, the Lessee shall acknowledge in writing the date of such substantial completion and the Commencement Date." Contract No. C26100A 4• In the event of a conflict between the terms of the Lease and the terms of this Amendment, the terms of this Amendment shall be controlling. Any other terms, covenants and conditions of the Lease remain in full force and effect. 5. This Amendrnent may be executed in several counterparts, each of which shall be deemed an original, and all of such counterparts together shall constitute one and the same instrument. 2 Contract No. C26100A IN WITNESS WHEREOF, Lessor and Lessee have caused this First Amendment to Lease to be executed by each party's duly authorized representative effective as of the date first above written. LESSOR: CITY OF PALM DESERT, a California municipal corporation By: Name: Title: ATTEST: City Clerk LESSEE: DESERT SANDS SCHOOL DISTRICT, an education agency By: Name: Title: 3